Bitcoin price is struggling below $105,000. BTC could continue to decline if it remains below the USD 104,200 resistance.
- Bitcoin started a new decline below the $104,000 support.
- The price is trading below $104,000 and the 100 hourly Simple Moving Average.
- There was a break above a bearish trendline with resistance at $103,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could continue to decline if it fails to cross the $105,000 zone.
Bitcoin price faces resistance
Bitcoin price failed to stay above the $105,000 support level and started a new decline. BTC fell below USD 103,500 and USD 102,000 to enter a bearish zone.
The decline was such that the price even peaked below the $100,000 support. A low was formed at $98,900 and the price recently started a recovery wave. There was a move above the 23.6% Fib retracement level of the downward move from the $111,000 swing high to the $98,900 low.
Moreover, there was a break above a bearish trendline with resistance at $103,000 on the hourly chart of the BTC/USD pair. However, the bears remained active around $104,000.
Bitcoin is now trading below $104,000 and the 100 hourly Simple Moving Average. If the bulls attempt another recovery wave, the price may encounter resistance near the USD 103,500 level. The first major resistance is around the $104,000 level.
The next resistance could be $105,000 and the 50% Fib retracement level of the downward move from the $111,000 swing high to the $98,900 low. A close above the $105,000 resistance could send the price higher. In the mentioned case, the price could rise and test the USD 106,500 resistance. Any further gains could send the price towards the USD 107,500 level. The next threshold for the bulls could be $108,500 and $108,800.
Another drop in BTC?
If Bitcoin fails to rise above the $104,000 resistance zone, it could continue to decline. Immediate support is near the $102,150 level. The first major support is near the $100,500 level.
The next support is now near the $100,000 zone. Any further losses could send the price towards the USD 98,800 support in the short term. The key support is at $97,500, below which BTC could struggle to recover in the near term.
Technical indicators:
Hourly MACD – The MACD is now gaining speed in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Major support levels – $102,150, followed by $100,500.
Major resistance levels – $103,500 and $104,000.